If you make an extra payment on your mortgage annually what does that do to your 30yr fixed rate
October 15, 2008 - The interest rate stays the same. But since you are paying down the principle faster. The AMOUNT of interest that you pay will be less.
- The interest rate stays the same. But since you are paying down the principle faster. The AMOUNT of interest that you pay will be less.
I've never actually done the calculation, but sevearl realtor and mortgage brokers have told me that if you make an extra payment per year you can pay off your mortgage in 19 years instead of 30, give or take a few months. ... When I tried it on the Loan Calculator Excel template it yield the same result.
I agree with the others. Making extra payments lowers the principle amount (versus interest) and you pay off your mortgage faster. ... ... One caution is to check if your loan has an early pay off fee. In order to get a lower interest rate I had agreed to a term that stated I couldn't pay off my house loan in the first five years. It never occurred to me that meant I couldn't refinance the house in the interests rates dropped the second year I owned my home. ... ... Another thing I to watch for is mortgage company promotions that for a fee will "allow" you to pay your mortgage on a bi-weekly basis instead of monthly. Instead of paying them use the money to pay down the loan and make extra payments when you can.
- The rate stays the same...but you pay much less in total interest. ... Just do the amortization to see how it works out for your specific loan. Excel makes it easy to do.
Knowledge Base: Mortgage
Reverse mortgage?
October 10, 2008 - Category: Mortgage
i have found there is a ton of misunderstanding around reverse mortgages. 1. what do you think a reverse mortgage is? 2. how do you think it works? 3. why do you think it is good / bad? you must answer all three to be considered for best answer. reverse
Reverse mortgage »
what is a reverse mortgage and how do people benefit from them?
October 10, 2008 - Category: Mortgage
what exactly is a reverse mortgage? why do not people have to pay it back?. a reverse mortgage is a loan that allows people ages 62 and up to get the money they need for any expenses they may have. unlike traditional mortgages, there are no monthly payments on a
reverse mortgage people benefit »
Is there a reverse mortgage available for people less than 62 years old?
October 10, 2008 - Category: Mortgage
i am a us homeowner. instead of refinancing, i wanted to explore the possibility of a reverse mortgage. all i have seen so far is that this is only good for homeowners aged 62 or more. is there a company that provides reverse mortgages for those younger than 62?. have
reverse mortgage available people 62... »
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